VOL.

4, ISSUE 8, SEPTEMBER 2014

` 75

RNI No. DELENG/2011/39197

DL 14/1352/2012-14

APPARELS

WHERE IS APPAREL INDUSTRY

HEADING?
Face To Face:
Paragon Apparels P Ltd On An
Expansion Spree

Burning Issue :
Vietnam Textile Industry A
Rising Competitor

Fair & Events :

Ramkrishna (Jhanwar) Group
Opens One Stop Shop For
Fabrics In Gurgaon

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FIND

Tukatech is a multi-discilpinary tool that has helped us tremendously to shrink price, bulk and
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US

O NLINE

We replaced all our Lectra and Optitex system with TUKA because no one could take our paper pattern
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than half the sta. Nidhi Dutt, Orient Craft
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Insi de . . .
10 COVER STORY

Editorial

Opinion Live

24

Industry On The Move

18 FACE TO FACE

28

India News

30

International News

PARAGON
APPARELS
PVT LTD

Tex Corp Ltd

Adding Value
& Glamour to
Zippers

PERFECTSOURCING

September 2014

Richa Industries To Sell Textile Biz

Panipat Textile Industry Protests Against Increase In Vat
India Aspires To Increase 25% Market Share In Vietnam By 2018
Textile, Garment Exports Sees 20% Hike
Himatsingka Buys 100% Stake In Giuseppe Bellora
Sangam Plans To Invest Rs 120 Crore
Oeko-Tex Introduced Mystep At Texworld Usa
Nigeria Loses Over A Million Jobs To Counterfeiting In Textile
Industry
Jog Swimwear Is Now Available In Singapores Robinsons
Orchard
Uae Textile Industry Is The Largest Trading Sector After Oil
47 Brand Partners With Ccbl To Make Athletes Products

31

Retail News

32

Burning Issue

36

Surat Update

37

Surat News

38

Fair & Events

on an Expansion
Spree

22 MARKET UPDATE

Anika Passi Joins As Country Manager At Axstores Far East Ltd.

Country Manager Position Vacant In Amc (Target Sourcing
Services) Tss
Continum Buying Agency Shifted To A New Location In Gurgaon
Vipin Saigal Says Adieu To All Saints
Vice President Of Gap International Rajiv Malik Shifts To The Us
Operations Office

Auchan Ends Partnership In India

Big Global Retail Brands Enjoy Low Presence In India
Satomi Opens New Showroom In Delhi
Future Retail Ahead With Bold Steps To Grow
Expansion Of 65% Reported By Online Retail Category
Vietnam Textile Industry A Rising Competitor
Mega Cluster In Surat To Boost Business
Surat Textile Traders Setting Sight On Nepal
Design Of Surat Mega Cluster Announced By Central Government
Galleria Intima Closes On An Average Note
NAEC Organized Seminar To Promote Universal Account Number
Ramkrishna (Jhanwar) Group Opens One Stop Shop for Fabrics
in Gurgaon

www.kornit.com

, Mob.: +91-9646993939,

, sps@iccial.in

TEAM

Time to Take a Leap & Grab the Opportunities

MORGAN

OWNER & PUBLISHER

GAGAN MARWAH
EDITOR
DEEPTI MARWAH
SPECIAL CORRESPONDENT
RAKHI CHAUDHARY
CREATIVE DESIGN & PROD.
UMESH KHORWAL
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KUNDAN ROY
CIRCULATION MANAGER
PALAK

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HEAD OFFICE
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PERFECTSOURCING

September 2014

The buyers are optimistic and want to increase sourcing suggest the
conversation with most of the buyers in India, however, the concern still remains
the same, is India ready to grab the additional share with the same capacities,
productivity and infrastructure? This question has been asked by the buyers over
time and again. When our team spoke to buyers they shared optimism but with
certain doubts as India still needs to work on many aspects. When we spoke to
exporters, most of the big wigs have good orders and plans for expansion, medium
but niche product driven companies are also satisfied with the scenario except for
the players who have usual range and capacities. For them, the threat of losing
business on grounds of competitiveness still exists.
The good part is that a lot of optimism also prevails with the formation of new
Government as it is sending out positive signals to buyers who now see India as a
more promising and upcoming destination. The PMs speech on the Independence
promotes MADE IN INDIA and this has encouraged the manufacturing sector
and they are eagerly waiting for drastic changes in labour policies.
The point is that the changes and development keep on happening on the
macro level, however, improvement at an individual level is very much required.
Also, players need to analyze each and every aspect about the production and
designing so that the missing links in terms of pricing, delivery and designing can
be fulfilled and the industry would reach new milestones.
In this issue, you will also read about the growing importance of Vietnam as a
manufacturing sector and opinion of exporters on the same. The country is
becoming the next most viable option to China and even Bangladesh with the
Government focusing on new initiatives to boost exports from the country.
Hope you will enjoy reading this issue and will get back with your feedback.
Deepti Marwah
Editor
PERFECTSOURCING

OM SAI RAM
Email: editor@perfectsourcing.net

GA Morgan Dynamics P. Ltd.

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Tele/fax: +91-8041758201 - anand@morgan-dynamics.com

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Ludhiama: 08285016873

What changes
should be
mandatory and
should be
implemented to
increase the
productivity in the
industry. Do you
think the promotion
of Made in India
promoted by Hon
PM Shri. Narendra

n
o
i
n
i
p
O
e
v
i
L
Modi to increase
manufacturing will
boost the growth of
textile sector and
increase our reach in
the overseas market.
What more such
steps should be
taken by the
Government to
support the textile
and apparel
industry?

PERFECTSOURCING

September 2014

O pinion
L ive
T

he steps that are taken by the Government will definitely benefit the
textile industry. The visitation of our Prime Minister Shri Narendra
Modi to Japan will have good implications on Indias relationship with
Japan which will further help to boost our industry and to create our
market in Japan. Currently the industry is facing issues related to provident
fund and labour wages which has increased a lot and has increased the cost of
production, but the productivity is still the same. Though the market is
reporting demand but the challenges affect industrys growth. As far as growth
is concerned we are anticipating 10% growth in financial year 2014-15.
Virender Magu, Jyoti Apparels Pvt. Ltd.

ndia will definitely be benefitted from the steps that are taken by Shri
Narendra Modi. Market is performing well these days as good demand is
being seen in the market. China is getting expensive and in such a scenario
if Made in India is promoted it would definitely increase our market share
in the overseas markets and will help us to be competitive among others. Buyers
are demanding for scarves in different prints and designs that includes, flower
designs, digital prints and are looking at India after China. If such more steps
will be taken by the Government then it will automatically increase the demand
of Indian goods and will boost manufacturing.
Sumit Sadh, Owner, Ahaan Exports

arket is improving day by day and new buyers are also coming to
India for sourcing. Moreover, the production in China getting
expensive is also helping in increasing exports. The steps taken by
our Government to develop economy and to expand reach of
Indian goods all over the world will definitely help India in taking a lead
position. When it comes to increase in manufacturing, I believe if the demand
will increase then automatically it will boost the manufacturing sector. Labour
issues have always remained one of the biggest problems for the industry and
only the Government can support in this aspect.
Prashant Sadh, Kamal Overseas

ccording to me labour laws should be improved to increase the

productivity of the industry as they are creating crisis in the growth
and productivity. Made in India promotion campaign will improve the
situation of the industry. Moreover, visitation of our Prime Minister to
neighbouring countries if happens on the same pace then exporters working for
those markets will definitely see good results. We are also anticipating 10-15%
growth in financial year 2014-15.
Ram Krishan Tandon, R. K. & Company

here are certain steps that should be executed and implemented by the
Government as well as exporters to increase the productivity and to
grow our market in the world. As far as the new Government is
concerned it is supporting and executing many new plans to increase
our market and to open new doors for us by creating good relations with our
neighbouring countries and establish trade tie ups. Being in the industry I
would say that we should also work on some of our weaknesses to meet the
requirement of the industry like delivery schedules and quality of our products.
Arpit Tandon, M.M. Exports

COVER STORY

WHERE IS APPAREL INDUSTRY

HEADING
?

?
?

The textile and apparel industry is the second largest employer

after agriculture, however, the pace of growth in the industry is
not the way it should be. Despite being one of the major
contributors to Indian exports and having almost every
required advantage, Indian apparel industry has not grown as it
could have been. Indian apparel exports were valued at US$ 14
bn in 2011 which has grown at a CAGR of 2% only in last five
years which is very less when compared to its competitors.

10

PERFECTSOURCING

September 2014

Increasing Cost of
Production in China
Diverting Orders

Emerging Competitors
Cambodia, Philippines, Latin
American countries, Vietnam, Sri
Lanka, Myanmar, and to some extent
African countries are emerging as
competitors with an edge in currency
competitiveness and lower labor cost.
Preferential duty structures (MFA)
enjoyed by these countries are also
affecting our competitiveness. However,
there is another side to this story as of
late many buying houses and liaison
offices are sharing increased business
opportunities from countries like Brazil,
Mexico, Russia, Japan, et al.
On the flip side, moderate wage
growth and lower energy prices are
making the US and Mexico more
desirable manufacturing destinations.
As a result more US businesses is likely
to be produced goods closer to home in
the coming years. This means
companies will start to move
manufacturing out of those expensive
countries if they can, to cheaper
countries like the US. Recent US

Accordingly, Indias
apparel export earnings
are expected to grow
by a healthy 13.3 per cent
in 2014-15. Exports are
likely to stand at USD
16.9 billion during the
year. In 2015-16, the
country is expected to
ship apparels worth
USD 18.6 billion. This
translates into an increase
of 10.3 per cent.

government data shows similar gains.

Industrial production increased by
0.4%in July for its sixth-consecutive
monthly gain, according to the latest
Federal Reserve report. Manufacturing
output advanced 1 percent in July, its
largest increase since February. It used
to be a simple rule: Manufacturing is
cheaper in Asia and South America, but
its fundamentally changed.
While thousands of U.S.
manufacturing jobs that were lost to
overseas production wont be recovered
overnight, the landscape is changing.
And the manufacturing shifts are
especially dramatic in China. Wages in
the most populous nation are soaring.
By comparison, Mexican
manufacturing labour in 2000 was
roughly twice as expensive as in China.
But since 2004, Chinese wages have
grown nearly five fold, and Mexican

www.huffpost.com

About 65% of the garments

exported to the US and European

market were from China a couple of

years ago, but now it was reduced to
40%. Since 2004, Chinese wages have
grown nearly five fold. Higher energy
costs also are dampening Chinas
manufacturing prowess. The cost of
industrial electricity rose by about 66%
in China, natural gas soared by about
138% according to Boston Consulting
research.
Another factor which is taking away
business of apparel and textiles from
China is that the country no longer
wants to focus only on this sector and is
focusing on high tech manufacturing so
textiles will continue to get lesser and
lesser support and thus the cost of
manufacturing will continue to rise.

www.fashiontech.files.wordpress.com

owever, if trade pundits

are to be believed Indias
apparel export earnings
are expected to grow by a
healthy 13.3% in 2014-15. Exports are
likely to stand at USD 16.9 billion
during the year. In 2015-16, the country
is expected to ship apparels worth USD
18.6 billion. This translates into an
increase of 10.3%. India aims to achieve
textile and apparel exports worth
$300bn in 2024-25 from the present
$39 bn which may require additional
investments worth $120 bn, according
to a draft vision of strategy and action
Plan for Indian Textiles & Apparels.
With China likely to buckle under the
heat of spiralling wages and low safety
standards in Bangldesh garment
industry, India can take away a bigger
pie in apparel exports.
Cambodia, Vietnam and Myanmar
have also made their presence felt in the
market, however, lack of potential for
scalability has narrowed down their
opportunities but still the impact is big
and has affected the growth in Indian
segment.
All these factors can open new
door of opportunities as a lot of
buyers want to shift to India and are
diverting to India for sourcing,
however, how far Indian exporters
will be able to fulfill the demand for
clothing is still a question mark?
Team Perfect Souring interacted with
a lot of buyers on the sourcing
pattern and where is Indias apparel
industry heading to?

September 2014

PERFECTSOURCING

11

ncreasing textile and apparel demand from large

market significantly improved the order book
visibility and thus performance of most garment
exporters this year. Chinas high cotton cost and
rising labour costs has forced many international buyers to
look for other alternate sourcing points and India has
benefited by grabbing a fair share of the slice. The trend, if sustained in FY15,
is likely to improve the financial metrics of garment exporters even further.
Traditionally we are strong in summer garments. Demand for synthetic
garments is also picking up, mostly because of the perceived increase in
pricing in China. This change in situation has thrown open new avenue to
increase our share in the winter / autumn season market as well. The product
categories include sportswear and performance garments. For our company
diversification of both the markets and the products is key areas for expansion.
With the availability of new printing technologies like digital printing /
sublimation prints at affordable cost , in wide range both in Pigment prints &
Reactive print, developments of new styles become easier and cheaper.
Consequently the basket of products which we can offer is also expanding.
With this technology we were able to open the bottleneck of Minimum Order
Quantity etc. If we go by the current trend we should easily clock a minimum
of 30% growth in financial year 2014 -15
Yatish Moncourt, Francis Wacziarg Agencies (P) Ltd.,

have observed that home textile sector is pacing

better as compared to apparels and is going to new
scales every year. Expansion is one term that needs to
be done for the growth and development of the
company and to create sustainability in the market. We are
also focusing on new markets to make our presence all
over the world, moreover, we are seeing an increased interest for Indian
products from Brazil and Mexico. We are looking forward to tap these markets
as well. When it comes to growth I would say that the overall market will grow
by 15-20% in the next few years and as far as the growth of my company is
concerned we are anticipating 35-40% growth in financial year 2014-15.
Rajeev Tyagi, Arielle Sourcing Pvt. Ltd.

he major problem of this industry is labour as everyday the wages are

rising and is affecting the growth and productivity of exporters. In
Northern India not even a single labour is ready to work in the
industry especially in Delhi, NCR. In current scenario Vietnam has
become the biggest threat for India. We source our goods majorly from India,
which includes the 70% mens wear and 30% ladies wear. Our major areas for
sourcing are Delhi, Ludhiana, Chennai and Bangladesh. Australia is also
becoming a key market and is opening up. Besides, South Africa, Mexico and
Brazil are also looking at India for sourcing. Buyers are looking cotton,
polyester, poly-chiffon, poly-cotton fabrics in ladies wear.
Umesh, GM, SAAR

12

PERFECTSOURCING

September 2014

wages have risen by only 67% than

50% in dollar terms. According to
Boston Consultings global
manufacturing cost-competitive
index-with the US pegged at
100-China came in at 96 this year.
In other words, its 4%more
expensive to manufacture in
America versus China. Chinas
reading used to be lower in the 80s,
which means the cost of making
goods in the U.S. compared to
China has since narrowed.
US wage growth also has been
slow as the current hourly, federal
minimum wage is $7.25. Keeping
manufacturing local also makes
inventory management easier and
provides flexibility. And domestic
production means better quality
control.
As businesses continue to
recalculate the costs of
manufacturing in China, some
industries are forecast to reach a
tipping point in around five years
and begin shifting manufacturing to
the US.

Will India Gain or Lose

in the coming days?
Will India Gain or Lose in the
coming days, this is a question
which is raised in mind of almost
everybody related to the apparel
and textile industry. According to a
report of Technopak Advisors, the
potential size of the Indian textiles
and apparel industry is expected to
reach US$ 223 billion by 2021. The
demand of Indian fabric is high due
to ethnic, earthly coloured and
many textures which means that it
holds potential if one is ready to
innovate. Textiles exports stood at
US$ 28.53 billion during April
2013January 2014 as compared to
US$ 24.90 billion during the
corresponding period of the
previous year, registering a growth
of 14.58 %.
Currently, Textiles / Apparel
export is doing well. In 2013/14, a
weaker rupee and firm overseas
demand helped the sector add $4
billion to overall exports. The textile
sector is witnessing a spurt in
investment. The industry is
attracting foreign direct investment
in billions of dollars.
Coming on to the advantages

extile industry is improving as the policies that

are coming in are beneficial for the industry.
Many markets are opening their doors for Indian
goods which will help in the development of our
industry and enhance the growth as well. Russia has
decreased sourcing from the US and Europe is now
looking at India for importing garments. In the current scenario, buyers are
looking for multi utility products such as jumpsuits as the industry has become
more style and fashion oriented. The fashion is also changing as the buyers are
demanding for light value added garments with minimal bead and sequin
work. It is expected that India will see good growth in the next few years.
Laxman Singh, GM, Boutique International

ur infrastructure and Government policies are

still creating barriers for our industry. The
shortage of labour in Indian textile industry has
largely affected the growth and production.
Countries like Vietnam, Cambodia, South Africa, Burma,
Kenya, Ethiopia and many others are performing very well
and emerging at a very fast pace. Fabric supply is also an issue as exporters do
not get fabric on time. Lack of innovation is also an area where players really
need to work on.
After surveying the entire Indian textile and apparel industry, we have taken
our entire business out of India. Our industry should be more organized
otherwise the situation will become more critical. We are growing at the rate of
10% every year because of China and we will grow at the same in the next
financial year 2014-15.
Sumeet Kharbanda, Jane Ashley

arket is still on peak, the situation is

comfortable but the problem is the way of
working that creates bad impression and
dampens brand India image. We dont have
many varieties of fabrics which can be made available well
on time and this causes delay in deliveries. Bangladesh is
one of the biggest competitors for India as it provides quality with quantity at
required price. Lack of innovation, shortage of labour, untimely deliveries and
many others factors is affecting the reach of our industry to the world.
Currently many small countries like Indonesia, Cambodia, Vietnam,
Philippines are emerging strong in manufacturing of garments and are
attracting buyers. Labour laws is one of the major problems that has affected
the market of industry, secondly we rarely see innovation in products. So to
sustain in the industry we have to appoint designers who can search the
newest trends of the market and innovate according to the needs of the buyers.
Our strategy is to first satisfy our regular buyers then only focus on other new
vendors and buyers. We are anticipating 30% growth in financial year 2014-15.
Amit Vohra, Owner, Threads Incorporation

14

PERFECTSOURCING

September 2014

India aims to
achieve textile and
apparel exports worth
$300bn in 2024-25 from
the present $39 bn which
may require additional
investments worth $120
bn, according to a draft
vision, Strategy and
Action Plan for Indian
Textiles & Apparels.
first, India has the availability of all
types of raw materials and fabrics and
now even the man made fabric is
available in India in good quality and
volumes, which has helped the industry
to create new benchmarks. India, with
its vast availability of yarns, fabrics,
materials, the vibrancy of its colors &
creativity, the flexibility of mixing ideas,
has the availability of traditional and
modern infrastructure to produce.
While discussing about the current
market situation most of the buyers
agreed that India will be a preferred
destination for ladies garments, value
added garments and dresses, however,
in general an enthusiasm is missing
from the industry.
The exporters are still working on
traditional ways of working and delivery
times is still an issue. We want to do
good amount of sourcing but feel
constrained with the attitude of
exporters who are not bringing
something new on the table, said
Country Head of European based liaison
office. He also agreed that buyers are
coming to India to source something
new and innovative and are looking for
suppliers who can offer specialize
products.
The economic recovery in the US is
an advantage for the Indian textile
industry. Now India exports about 2530 per cent of the textile goods to the
global market and the figure is likely to
increase in one year. Earlier the textile
industry was based in some areas but
now the industry spans across the
country, which is a good sign.
Accordingly, Indias apparel export

ome

textile is performing
very well these days whereas
apparels are still slow. Buyers are
coming to India for sourcing
products like bed linen, pillows,
carpets, et al. In last few years a
large number of overseas buyers
have diverted to India for sourcing
home textile goods even the buyers
who were earlier sourcing from
China has now moved to us for
sourcing. Brazil and South America
is emerging market for Indian
home textiles. Hand knotted
carpets, fabrics with block printing
and small book prints are in
demand. According to the situation
of the industry especially in home
textiles we are expecting 20-25%
growth in financial year 2014-15.
P Vasudevan, President, India
Merchandising Services

arket
is
growing at a very high pace,
Bangladesh crisis and cost issues in
China is opening new doors for the
Indian industry. Buyers are
diverting to India on a very large
scale but the need is to tap them by
fulfilling their requirements.
According to me the market is full
of opportunities and if we will
deliver our products without
comprising on quality and
innovation buyers with automatically associate with us. As far as
current trend is concerned rayon
fabrics are very much in demand.
Deepak Dhingra, GM-Quality
& Assurance, Orient Craft Ltd.

16

PERFECTSOURCING

September 2014

earnings are expected to grow by a

healthy 13.3 per cent in 2014-15.
Exports are likely to stand at USD
16.9 billion during the year. In 201516, the country is expected to ship
apparels worth USD 18.6 billion.
This translates into an increase of 10.3
per cent.
India aims to achieve textile and
apparel exports worth $300bn in
2024-25 from the present $39 bn
which may require additional
investments worth $120 bn, according
to a draft vision, Strategy and Action
Plan for Indian Textiles & Apparels.
The plan presented by Ajay Shankar,
Chairman, Expert Committee &
Member Secretary, National
Manufacturing Competitiveness
Council (NMCC) to Santosh kumar
Ganwar, Minister of State for Textiles,
envisages creation of 35 mn additional
jobs.
The industry at the moment is
looking very bright because of
stability factor, foreign exchange,
and the political change in the
country, which is one of the
important factors that has played a
significant role in the growth of
Industry. The recent speech of our
Prime Minister Shri. Narendra Modi
on the eve of Independence day
clearly suggested that manufacturing
in India will be a priority and this
will increase buyers confidence in
India.
With consumerism and
disposable income on incline, the
Indian retail sector is growing multi
fold, boosting product development,
which is directly widening the product
base for export as well.

The Hurdles
The biggest hurdle of the Indian
textile industry according to most of
the exporters is the age old labour
policies, increasing wages and
infrastructure that does not support
easy flow of goods from one location to
another. Shortage of labour is also a
big barrier for the industry as despite
so many efforts by the Government to
increased skilled labour, the problem
still remains the same.
Sharp rupee appreciation is
hurting Indias competitive advantages
over Asian peers and also transiting
into a fall in rupee revenue and
volatile input costs adversely

It is 4%more
expensive to manufacture
in America versus China.
Chinas reading used to be
lower in the 80s, which
means the cost of making
goods in the U.S.
compared
to China has since
narrowed.

impacting margins and cash flows.

This could affect the growth. We are
concerned over the stronger rupee
value. However, I hope that value will
be maintained at around 60, said
Yatish Moncourt, Francis Wacziarg
Agencies (P) Ltd., a buying agency
specialized in import-export of
textiles, apparels, and soft furnishings.
FWAPL has its own buying offices in
India and Bangladesh.

Demand
As per most of the buyers the
demand for apparel and home textile
is good from India. In terms of fabrics,
rayon and lyocell fabrics are very
much in demand among the overseas
buyers butta fabrics is also
preferred by buyers due to its
innovative design and quality.
Mexico and Brazil is looking forward
to India to source both textile and
home textiles and as far as German
buyers are concerned they are
looking at importing leather goods
from India in a big way. Apart from
all these segments, ladies top and
ladies woven garments are very much
in demand among the overseas buyers.
Buyers are also looking for leather
bags, shoes, belts, pants like jeggings
as Indian players have an edge in
these segments and are offering
better prices as well. In home textiles
products like sheets, curtains,
beddings, cushions are at high
demand in the market. When it
comes to applications textures are
very much in demand.

FACE TO FACE

PARAGON
APPARELS
PVT LTD
on an Expansion Spree
COMPANY TO INAUGURATE
FABRIC MILL IN UNA & NEW
Roshan Baid, Director,
Paragon Apparels Pvt Ltd.

GARMENT UNIT IN PIPELINE

With a turnover of Rs 170 cr, Noida- based Paragon

Apparels Pvt. Ltd. has come a long way since its inception.
The company that started its journey in the year 1999 with
just 15 machines in Tughlaqabad Extension had never
thought that one buyer will change its fate overnight. The
company saw a big turning point when just after one year
of operations Adidas approached it and started buying
sportswear products. In conversation with Roshan Baid,
Director, Paragon Apparels, Team Perfect Sourcing brings
an interesting voyage of a young and focused person, who
worked on the basic principle of the trade i.e just be
different and follow the path of profession with full
commitment and dedication.

18

PERFECTSOURCING

September 2014

s we started the
conversation, Baid
humbly discloses, I have
always followed one
strategy in this trade and it is to work on
a niche category so that buyers have to
come and look out for you themselves.
Paragon Apparels is a manufacturer,
exporter and supplier of sportswear that
includes t-shirts, trousers, short pants,
ladies tops and kids wear as well. After
completing education from NIFT and
then after working with Gokaldas
Exports for around two years, Baid
followed his dream and decided to set
up his own company. We started of
with just 15 machines in the year 1999,
and today we have 1400 machines, we
are now expanding it further to 2000
machines in January 2015, said a
proud Baid.
Baid believes that innovation and
expansion is the only way one can reach
new heights and match up to
requirement of the market as well as of
industry. The company has reached

FACE TO FACE

many new milestones after getting

associated with Adidas. We started our
own printing unit in 2005-2006, which

was an added advantage, informs Baid.

In 2009, the company started a factory
based on the principles of lean

manufacturing with 900 machines. Baid

shares, We have recently started our
another garment unit in Noida where we
will add 600 more machines by January
2015 which will increase the production
capacity of our company from 5 lakh
garments per month to 7 lakh garments
per month. He also added, Beyond our
garment unit we are also coming up
with fabric mill in Himachal Pradesh
where we will manufacture sports fabric
like cotton and polyester. The new fabric
mill in Una, H.P. will produce 5 tonnes
of fabric. A garment dyeing and washing
plant is also being set up at the garment
unit to give high and consistent quality
to products especially in ladies wear
segment.
There is no dearth of work in the
market especially for those who are
manufacturing niche products, averred
Baid. The companys major chunk of
business still comes from Adidas. He
added, Adidas is the biggest buyer for
our company and has been associated
with us from the last 14 years. Also, it is
associated with Marks & Spencers, Walt
Disney, Hummel, Benetton
International, Johns and many more.

September 2014

PERFECTSOURCING

19

FACE TO FACE
With all in-house facilities like
printing mill, embroidery unit, wellequipped laboratories, garment dyeing
and washing plant the company is trying
to be fulfilled in every possible manner.
The USP of our company is the niche
product and continuous innovation so
we are adding value at every stage
because supporting industries are very
unreliable. He further added, We are
coming up with new designs almost
every day with the help of Korean
technician who is working round the
clock and is creating new fabrics.
Baid further affirmed that the
products made by the company are
polyester garments which are still not
made in India in a big way. The
properties of polyester makes it the best
fabric for sports because it is light
weight, has the capacity to absorb large
amount of sweat and even there are lots
of treatments could be done in this
fabric, thus it is ideal for sportswear.
All major sportswear garments are
available in polyester fabric and as we

Paragon Apparels Pvt.

Ltd is also manufacturing
t-shirts for IPL and has
made t-shirts for Kolkata
Knight Riders, Bangalore
Royal Challengers and
Delhi Daredevils. He feels
that there is still a huge
untapped market for
polyester which if
worked upon can bring
huge business to India.
40% of the world
business is in polyester
and we almost do
negligible business in
polyester, so one can
analyze, the number of
opportunities, we just
require half or 1% and
that will be big for us,

20

PERFECTSOURCING

September 2014

work for Adidas and Reebok we are

making mostly polyester garments
only.
Paragon Apparels Pvt. Ltd is also
manufacturing t-shirts for IPL and has
made t-shirts for Kolkata Knight Riders,
Bangalore Royal Challengers and Delhi
Daredevils. He feels that there is still a
huge untapped market for polyester
which if worked upon can bring huge
business to India. 40% of the world
business is in polyester and we almost
do negligible business in polyester, so
one can analyze, the number of
opportunities, we just require half or 1%
and that will be big for us, said Baid.
Currently, the company employs
4000 people, however, the numbers
would go up once the expansion of
fabric and garment unit is done. We
have 1000 ladies working with us who
were trained by us to become
operators, he added. Baid feels that the
industry has seen many ups and downs
and there were some big turning points
that changed the course especially
removal of quotas in 2004.
While discussing about the current
market situation Baid said, Market is
full of opportunities as China is getting
expensive but the problem is that we are
not organized, we dont have scales and
capacities to fill the gap.He also
observes that a large section of buyers
are coming to India but players are not
able to provide them consistency in
quality because of the labour issues
which is the biggest problem of the
industry right now. As a result a lot of
business is moving out of India. In last
six months the labour wages has been
increased by 25-30% whereas the
productivity remains the same, the laws
are not industry friendly and there is no
discipline, points out Baid.
According to him, the working
hours should be increased and labour
laws should be industry friendly so the
growth of the industry is accelerated.
The Government has a major role to
play here as they can only inculcate new
policies and laws and also reduce
bureaucracy from the industry.
Government can work on policies, but
we have to work on bringing new and
innovative products so that buyers
remain intact, said Baid.
To remain ahead and offer
competitive rates, the company has
recently installed new technologies like
sublimation printing and several others
so that both productivity and efficiency
is improved. Technology has to be

upgraded as that helps us in coming up

with new ideas, explains Baid. He also
informed that in the company
technicians are regularly researching on
new technologies available and instead
of changing the entire machinery
attachments are used with machines that
solve the purpose. We have an industrial
engineering department also which is
headed by a Sri Lankan, who keeps on
creating new attachments so that we can
make our work more precise, added
Baid. The company is working on areas
like lean manufacturing, industrial
engineering, updation of technology
segment to make our production more
reliable and efficient.
Paragon Apparels Pvt. Ltd. has its
presence all around the world due to
Adidas as it is the only supplier of
Adidas internationally. We have not
restricted our market, we are open for
everyone who deals in niche products,
said Baid. The company is also
supplying to domestic market not only
for Adidas and Reebok but also for other
brands like Kappa brand of Lifestyle,
Disney, US Polo and many others.
The unit of Paragon Apparels Pvt.
Ltd. is fully compliant and is also
approved by Marks & Spencers, Adidas,
Benetton, VF Corporation and all the
major brands of the world. He
emphasized, My mantra for the growth
is to innovate, create niche products,
innovative marketing and tap new
products because there are so many
products that are still untouched. He
informed that the company is now
getting into swimwear category as well
and will start manufacturing swimwear
garments from the next month. As far
as growth is concerned we are growing
by 30% every year and we will keep on
growing by 30% every year, said a
confident Baid.
Talking about the increasing
competition, he said No doubt
alternative sources for manufacturing
like Myanmar, Vietnam, Cambodia are
coming up strongly but they too have a
limit and will not be able to fill
capacities and scales required.He
further emphasized, China is a big
ocean and as it is becoming expensive
the opportunities will move to India
because we have same man power,
quality products for which we are
known in the industry, however,
industry needs to be geared up and grab
these opportunities otherwise the orders
will automatically divert to other
countries.

MARKET UPDATE

Tex Corp Ltd

Adding Value
& Glamour
to Zippers

Tex Corp Ltd,

manufacturer of all kinds of
zippers has created its own
niche in the segment by
offering quality, innovation
and most importantly
unmatched delivery times
which is the most crucial
aspect in the apparel
industry. The company that
has been in this business for
almost three decades has
brought some very
interesting concepts and
products in zippers. In
conversation with Mudit
Tandon, Vice President,
Tex Corp Ltd., Team
Perfect Sourcing brings its
readers the success story of a
company that has created
benchmarks in making the
most compliant and ethical
zippers.

Mudit Tandon, Vice President, Tex Corp Ltd.

22

PERFECTSOURCING

September 2014

ur pillars and core

strength has been the
short delivery schedules,
innovative designing, R&D for washed
garments and the customized pullers
and special finishes, said Mudit. He
explained that the first pillar i.e the lead
time is one of the biggest contributors to
the growth as Tex Zippers can commit
delivery starting 10 days all over India
and Bangladesh, and 15 days in
Vietnam, Cambodia, Sri Lanka and
Pakistan. The company also exports
zippers to Myanmar and promises
delivery within 20 days.
Mudit feels that at Tex Zippers
design and R&D have always played an
important role in its growth and success

MARKET UPDATE
and thus it is the second important pillar.
Our designing team is our core strength
as they research and create designs which
are according to the latest trends and
customers requirement, said he.
According to him, R&D for washed
garments and customized pullers and
special finishes manufactured by the
company gives it competence and
strength over other players in the same
segment.
Tex Corp Ltd. has two units in India
one at Gurgaon and the other at Roorkee
along with this the company has state-ofthe art manufacturing facility at
Bangladesh also that has the capacity to
produce 4,50,000 zippers everyday which
is constantly re-evaluated on the basis of
demand and orders of the customers. On
being asked how Tex is different from its
competitors, he said, There are three
areas or USP which makes us different
from our competitors, firstly, we try to
offer products that can increase the FOB
of the garment, secondly control on
supply chain so that lead times can come
down from ten days and thirdly offering
products according to customer
requirements at competitive prices. We
have a very clear policy that we dont
charge any unusual prices and try to offer
complete value to our customers, added
Mudit.
While highlighting the ongoing
trends in the market he said, Demand
keeps moving up and down, however, our
prime focus is to offer premier products
on time. He also pointed out that these
days there is a lot of demand for nickel
free, azo free and lead free zippers.
Moreover traditionally concealed zipper
(invisible zipper) has been a very popular
product for the company and has always
seen consistent demand. These days
jacket zippers are seeing a very good in
demand and because we do customized
pullers, we have lots of orders with us for
the same, added Mudit.
The groups major customer base lies
in the export segment and thus the
company is working with well-known
names in the industry like Shahi Exports,
Modelama Exports, Arvind Ltd, Texport
Overseas and many others. We are a
company whose roots are strongly
grounded with garment exporters as we
provide flexibility to our clients and
deliver the product before the production
time of the client.Mudit firmly believes
that while working with the export
segment for many years a good synergy
has been created which helps the
company to understand requirements of

exporters, their challenges and thus in

case of any critical situation solutions
can be churned out quite swiftly.
We do not deliver the entire
shipment in 10 days, in fact, we closely
interact with the client and we work
according to their production schedule
and shipment date, updates Mudit.
The quantity of zippers produced in
the zipper factory is much more than
what is actually required per day for
making garments during production,
this way the garment production goes
on swiftly without any break, he
further explained. Also, separate lines
of production are created for regular
clients so that whenever they require
raw material with specifications it can
be offered to them without any delay.
While speaking about the
nomination Mudit said, Instead of
getting nominated by brands, Tex Corp
Ltd is focusing more on creating
benchmarks in the industry by doing
their work without any flaws and
offering products at unmatchable lead
times, which automatically results in
nominations. Nominations, for us, are a
result of good business, not vice
versa.He reiterates that commitment
in terms of quality and delivery is more
beneficial in helping create brand of the
company instead of having a
nomination. Our customers who have
been associated with us for years are
aware of our quality and delivery, they
are the testimony to our performance
and spread the same amongst buyers
they are working with, avers Mudit. He
further adds, There is nothing better
than word of mouth and a customer
testimonial.
As far as growth is concerned the
company is anticipating 15-20% growth
in financial year 2014-15. On being
asked what is the vision for the next five
years he said, To become the preferred
choice of supplier in the Indian sub
continent in regions like India,
Pakistan, Bangladesh i.e. whenever
anybody who wants a high-end fashion
production at a fully compliant factory,
then Tex Corp should come to the
mind.
Mudit who has recently joined the
organization is working on bringing
some new interesting changes along
with his father Anil Tandon the founder
of the company.Our core strength has
always been service and I am trying to
work on customer service department
and make it stronger and customer
oriented, he concluded.

September 2014

PERFECTSOURCING

23

Industry
on the
Move
COUNTRY MANAGER Position
Vacant In AMC
(Target Sourcing Services) TSS
The Associated Merchandising Corp. is a
subsidiary of the Target Corporation. The
companys position for Country Head is still
vacant. Ever since Tripwood left the position the
search for new Country Manager is on.
According to the company the position will be
taken up by someone soon. AMC does business
as Target Sourcing Services/AMC, and provides
apparel-sourcing and product-development
services for its parent company, Target.

CONTINUM BUYING
AGENCY SHIFTED TO A
NEW LOCATION IN
GURGAON
Continuum buying Agency which
was established in 2002 at Delhi
has shifted to a new location in
Gurgaon. The company offers a
wide product range in womens
wear, leather and accessories and
has made its presence all around
the world.

24

PERFECTSOURCING

September 2014

ANIKA PASSI JOINS AS COUNTRY

MANAGER AT AXSTORES Far
East Ltd.
Anika Passi has recently joined as
Country Manager at Ax Stores. She was
earlier working as Regional Merchandise
Manager for Indian Sub continent Kmart, Australia. At Axstores she will be responsible for
India operations that will include sourcing and execution of
various businesses and day to day HR, Admin, Finance
functions. Sweden based Axstores is involved in buying hard
and soft goods from India and was earlier known as Ahlens.
Anika shares, This is a new phase and I am very positive
about the business from India in the coming days. She has
also worked with companies like Raymond, Intraport,
World Fashion Trade and Triburg. At Kmart Australias she
was successful in taking the business in the region from
USD 13 million to USD 160 million during her tenure.
Team Perfect Sourcing wishes Anika a great success for this
new journey.

VICE PRESIDENT OF GAP

INTERNATIONAL RAJIV MALIK
SHIFTS TO THE US OPERATIONS
OFFICE
Rajiv Malik who is the Vice President of Gap
International Sourcing has now shifted from
Delhi Branch to the US office. Gap
International is a leading global retailer that
offers clothing, accessories and personal care
products for men, women, children and babies.
The company has also shifted to a new location
in Delhi. Gap International works as a supply
chain management organization that provides
sourcing services to retailers. The company has
its presence all across the world with its almost
3,200 company-operated stores and almost
400 franchise stores.

VIPIN SAIGAL SAYS ADIEU TO ALL SAINTS

Vipin Saigal who was working with All Saints
has said Adieu to the company. He worked
with the company as the General Manager for
more than one and half years. Though nobody
has joined in place of him it is expected that
somebody from the industry would soon take
up the position.

TEXTILE, GARMENT EXPORTS SEES

20% HIKE

angam (India) Ltd., one of

the largest textile companies
announced that companys
board has approved its Rs
120 crore expansion plan to foray
into garment. The company plans to
set up 10,000 spindles for slub yarn
and mercerize unit along with improvement and modernization in
processing division. The company targets to manufacture
10,000 pieces of seamless garments per day from next financial year. This Rs 120 crore expansion plan will be funded
through a term loan of Rs 89.50 crore and balance through
internal accrual. The company plans to install 36 circular
knitting machines to be imported from Santoni, Italy, the
world leaders in seamless knitting technology. The company
has reported a 1.95% rise in net sales at Rs 372.93 crore
compared to Rs 365.80 crore in the corresponding quarter
previous year (Q1FY14) ended on 30th June. Meanwhile, net
profit during the quarter surged by 88.1% to Rs 11.34 crore
from Rs 6.03 crore in the corresponding quarter in the
previous year. The company reported an earning per share of
Rs. 2.88 compared to Rs. 1.53 in the quarter ended June 30,
2013(Q1FY14).

ndias overall textile and

garment exports rose
20% in May, 2014. The
overall
textile
and
garment exports, including
fibre shipments, hit $3.06
billion in May as compared
with $2.55 billion a year
earlier. Consequently, the
exports in the first two months
of FY15 climbed 18% to $5.99 billion against $5.07 billion a
year earlier. Exports of garments grew at a much high pace
than that of textile products as apparel shipments grew
by 24.9% in May whereas the textile exports grew just by
8.6%. In FY14, the rupee depreciation and steady orders from
the US drove up overall textile and clothing exports to $39
billion, compared with $34 billion a year earlier. However,
the exports were still lower than the target of $43 billion for
2013-14 as demand recovery in the European market was
slow due to a financial crisis.

RICHA INDUSTRIES TO SELL TEXTILE BIZ

ccording to sources, Richa industries with sales of

Rs 300 crore is in talks with a many private equity
players and a Kolkata-based textile group to sell its
business for around Rs 150 crore. The prospective
buyers will get access to one of the largest single
manufacturing facility in Haryana with capacity of 72,000
metric tonnes per annum and spread across 13 acres
with three lakh square feet of covered area.
Sudip
Bandyopadhyay-led Destimoney Securities is learnt to have
bagged the mandate from Richa Industries to conduct the
sale process.

PANIPAT TEXTILE INDUSTRY PROTESTS

AGAINST INCREASE IN VAT

he textile industry of Panipat protested two day

bandh against the rise of 13.25% VAT on home
furnishing and other items. The district textile
traders also submitted a memorandum to Panipat
tehsildar opposing the new tax and raised slogans against the
state Government and burned dummy of chief minister Bhupinder Singh Hooda.

28

PERFECTSOURCING

September 2014

www.invest2success.com

SANGAM PLANS TO INVEST RS 120

CRORE

HIMATSINGKA BUYS 100% STAKE IN

GIUSEPPE BELLORA
www.himatsingka.com

www.customercarenumber.co.in

www.sangamuniversity.ac.in

INDIA NEWS

imatsingka Group has acquired 100% stake

in Giuseppe Bellora, the luxury Italian bedding
brand Bellora and now Himatsingka Group
has become the sole shareholder of Giuseppe
Bellora S.p.A. Giuseppe Bellora SPA is engaged in the
manufacture and sale of linen, cotton and cotton fabrics
globally. It has an extensive presence in Italy and is exploring
opportunities to expand across Europe and in select markets
in Asia.

INDIA ASPIRES TO INCREASE 25%

MARKET SHARE IN VIETNAM BY 2018

ndian textile and garment material suppliers plans to

raise 25% market share in Vietnam. At present, Vietnam
is the worlds third largest importers of textiles and
ranks fifth on the list of the largest suppliers of garment
products. On the other hand, India is the worlds second
largest producer of input materials for the textile and
garment industry, such as cotton and fiber. Keeping this in
mind, the Indian textile and garment material suppliers have
drawn up a plan to raise their market share in Vietnam to
25% by 2018.

INDIA NEWS
PHD Organises 2nd National Seminar
on Non Woven Technical

he PHD Chamber of Commerce and Industry

organized second National Seminar on Non
Woven Technical Textiles: Opportunities and
Challenges at the PHD House. Indias technical
textiles market which currently is estimated at USD 14
billion is likely to reach a level of USD 32 billion by 2023,
hitting a Compounded Annual Growth Rate (CAGR) of
9%, the way the domestic textiles industry is diversifying
towards non-woven technical textiles with technological
innovations and building global partnership with its
counterparts, revealed a paper brought out by PHD
Chamber of Commerce and Industry and Technopak on
Non-Woven Technical Textiles: Opportunities and
Challenges. PHD Chamber further states that textiles
and apparel industry size would balloon at USD 226
billion by 2023. Lack of basic infrastructure and lack of
training / educational facilities are few important issues
which need to be addressed in order to accelerate the growth
of technical textiles. Currently, Indian textiles and apparel
industry is estimated to be worth USD 99 billion which
includes both domestic consumption and exports and is
projected to grow at a CAGR of 8.6 per cent to reach USD
226 billion.

L-R: Ram Singh,Director, Ministry of Textiles; Anil Khaitan,Chairman,

Industry Affairs Committee, PHD Chamber; Ajay Shankar, Member Secretary,
NMCC and Vivek Seigell, Senior Secretary, PHD Chamber releasing
Knowledge Report on Non Woven Technical Textiles

TT Yarn Receives Trophy for

Second Highest Exports of Yarn

T Yarn has been rewarded with a Silver

Trophy for the Second Highest Exports of Yarn
from India in Counts 50s and below under
Category II of The Cotton Textiles Export
Promotion Council of India. We shall be receiving the
trophy on September 12th by the Honourable Textile
Minister of India, informed Rikhab C. Jain, Chairman,
TT Yarn. He further added, We assure you to add
further value to T.T. Yarn in coming years for the fullest
satisfaction of all knitters and weavers and others across
the world as we believe in constant improvement to stay
in step with the changing times.

September 2014

PERFECTSOURCING

29

OEKO-TEX INTRODUCED MySTeP AT

TEXWORLD USA

JOG SWIMWEAR IS NOW AVAILABLE IN

SINGAPORES ROBINSONS ORCHARD

he
International
OEKO-TEX Association
announced the introduction of MySTeP, a robust,
secure database application that houses a textile product
manufacturers information related to its sustainable
operations at TexWorld USA. MySTeP complements the
STeP by OEKO-TEX certification, a comprehensive
certification program for brands, retailers, and manufacturers from all sectors of the textile supply chain who want to
validate their sustainable production in a transparent,
credible, and clear manner that is consistent country
to country. The MySTeP database facilitates private,
confidential communication between customers and
suppliers, ensures that compliance data and other certifications are complete and up to date, and helps facility operators
to manage the many components of a comprehensive
sustainable production strategy that is both environmentally
and socially responsible. MySTeP provides a simple overview
of a companys textile supply chain and the manufacturers
that define it.

OG
Swimwear,
the
upscale and refined brand
from France opens its store in
Singapores
Robinsons
Orchard. JOG Swimwear is available
in 16 countries and one can find the
brand in the most luxurious hotels in
the world, department stores, upscale
multi-branded shop and soon a
flagship store. JOG Swimwear shines by its presence in a
multi-branded corner fully dedicated to swimwear located on
the third floor near the lingerie department. The 2014
colour palette is clearly a sunny one with vibrant sky
blue and emerald green make a summery and aquatic
colour duet. Raspberry red, plum and geranium pink
bring all the feminine needs to 2014 collection colour
association. Elegance and quality are the key words of the
brand.

www.histoiresdeweb.fr

www.images.footballfanatics.com

nl.oeko-tex.com

INTERNATIONAL NEWS

UAE TEXTILE INDUSTRY IS THE LARGEST

TRADING SECTOR AFTER OIL

30

PERFECTSOURCING

September 2014

www.2.bp.blogspot.com

47 BRAND PARTNERS WITH CCBL TO

MAKE ATHLETES PRODUCTS

47
Brand,
a
privately
held
premium sports lifestyle apparel and
headwear brand, has partnered with
Cape Cod Baseball League (CCBL) to
build the best product possible for
athletes. 47 Brand is the official
on-field headwear and off-field apparel
brand for four of the premier teams in
the league. This year marks the first
year of the long term partnership. As the official partner, the
brand designed custom headwear and apparel for these four
teams: the Bourne Braves, Brewster Whitecaps, Harwich
Mariners and Hyannis Harbor Hawks, with plans to extend
the two-year enterprise, creating sports lifestyle product
for more teams by the summer of 2016. 47 Brand will be
outfitting teams in custom hats from their new fitted
silhouette, the 47 PRO. The reputation of the Cape League is
well-known along the shore, throughout Massachusetts and
nationally in the world of sports.

NIGERIA LOSES OVER A MILLION JOBS TO

COUNTERFEITING IN TEXTILE INDUSTRY

article.wn.com.jpg

he UAE textile industry is not only the countrys largest trading sector after oil but it is also one of biggest
employment providers in the industrial sector.
UAEs textile exports cover more than 50 countries
in Africa, the Middle East, South Asia and Europe, while
major exporters are China, South Korea, Japan and Indonesia. The textile industry occupies an important place in the
UAE economy as a whole and particularly in Dubai, because
of its contribution to the industrial output, employment generation and foreign exchange earnings. The volumes in mens
wear segment had grown significantly from its initial figure of
16,250,000 units in 2006 and the homegrown luxury brands
were in high demand from brand conscious male consumers
with high purchasing power. UAE was strongly poised to be
one of the worlds major textile and apparel markets. The
UAE textile industry has a diversified product portfolio. Some
of the textiles
produced in the
country are car
seats, tents and
curtains, in addition to clothes,
the knitted fabric
is most in demand in UAE,
accounting
for
around 49.7%,
followed by woven fabrics.

ue to counterfeited products more than a

million Nigerian textile and apparel workers have
lost their jobs in the last twenty years. The
prevalence of counterfeiting has forced many
textile factories to close, leaving the whole industry in danger
and posing a potential danger to the economy and its position
as a new frontier economy. Industry experts estimate that 40
percent of all goods in Nigeria are either substandard or
counterfeit.

RETAIL NEWS
EXPANSION OF 65% REPORTED BY
ONLINE RETAIL CATEGORY
www.meraevents.com.jpg

uchan
and
Max Hypermarkets have
ended their
partnership in India, by common agreement which was
signed in August 2012. In September of the same year, the
Indian government announced changes to the foreign direct
investment (FDI)regulations surrounding multi-brand retail.
These excluded some of the hypermarkets already under the
Auchan license as the changes did not apply across India,
with individual states free to veto the amendments. Despite
continued efforts during 2013 to create a joint venture
to comply with the FDI regulations, the parties could not
facilitate a proposition. The 12 stores will cease to operate
under the Auchan banner by January 2015 at the latest.

SATOMI OPENS NEW SHOWROOM IN

DELHI

atomi, the
brand of the
most exquisitely-designed sarees, suits,
lehengas and Indian accessories, launches its second outlet in
the capitals bustling South Extension Market-II. The store
was officially inaugurated by style diva, actress, model and
designer, Mandira Bedi on 7th August, 2014. Her own
eponymous line of sarees will be exclusively available in
the capital through SATOMI outlet present in South Ex and
Rajouri Garden. The showroom which is spread over an area
of 2,220 sq feet is a one-stop shop for the style conscious
woman of today who only wants to see herself in exclusive
and exquisite sartorial pieces. The outlet will provide access
to the signature Satomi digitally-printed sarees and the
limited edition apparel. The store will display the entire
Satomi range of digitally-printed sarees, readymade suits and
bridal lehengas.

he online retail segment has

expanded on a vast scale with
the increase in the number of
people preferring to shop
online. Apparel, health, home furnishings,
fragrances and cosmetics are the few
categories which have shown growth in
the last 12 years, with apparel being
the strongest with 66 percent followed by fragrances and
cosmetics at 12% growth. The growth has come across
all retail categories and most of them show promising
transactions and conversion rates along with growth in
visitors. Flipkart group of websites (including recently
acquired Myntra) are the most visited retail sites with over 26
million unique visitors for the month of July 2014 and it was
followed by Jabong and Amazon.

FUTURE RETAIL AHEAD WITH BOLD

STEPS TO GROW
www.futureretail.co.in.jpg

httpfindlogo.net.jpg

AUCHAN ENDS PARTNERSHIP IN INDIA

he plans of many companies have derailed in

recent years due to the
economic slowdown in
the market. Large debts taken to expand capacity to meet the
expected increase in demand have weighed heavily on
company cash-flows. But companies like Future Retail have
taken bold steps to meet the challenge of the market. Future
Retails debt-equity ratio has never been very high in the
past 10 years, the ratio has usually been below 2 times. But
quick addition to store count, debt amassed to fund this
expansion, consumers averse to spending and an army
of mostly loss-making subsidiaries made a heady recipe
for trouble for Kishore Biyani-led Future Retail, earlier
Pantaloon Retail.

September 2014

PERFECTSOURCING

31

BURNING ISSUE

VIETNAM
TEXTILE
INDUSTRY
A RISING
COMPETITOR
V

www.tmd433wordpress.com

ietnams textile and

garment sector has been
growing at a fast and
sustainable growth rate
over the past years and now it is
considered as the next big
manufacturing destination. With a
population of almost 90 million,
Vietnam has a vast pool of young, skilled
Vietnamese workers who are more than
willing to work for low wages. Vietnam
has joined WTO in 2007, which has
provided it tremendous opportunity to
develop. The textile and garment sector
took strong and stable development
steps and is now ranked in top 10
countries in textile and garment exports.
The availability of low cost apparel

www.hktdc.com

32

PERFECTSOURCING

September 2014

manufacturing, small investment

capital, quick playback period and lots
of preferential policies from the State is
helping the country to compete with
others in textile sector. As China and its
workers get wealthier, global
manufacturers are heading South East
Asia to get lower cost production.
Though other countries like Bangladesh
and Cambodia are also cheaper but they
involve higher risks than Vietnam due to
which it competes with them directly by
providing low cost apparel
manufacturing solution in Asia.
Vietnam is a member of TTP (AsiaPacific trade agreement, known as the
Trans-Pacific Partnership (TPP)
Agreement with the objective of shaping
a high-standard, broad-based regional
pact. It is expected that in 2015 the
agreement will come into effect that will
allow the phasing out of tariffs in the
apparel industry. In order to secure
duty-free status, Vietnam must agree
that all manufacturing processes,
including yarn spinning, knitting and
dyeing, that will be carried out in TPP
member countries. If Vietnam obtains
duty-free status then it will further
improve the situation of its industry.
The major diversion of business to
Vietnam occurred because of China as it

has not remained a cheap source of

manufacturing and the wages of labour
in the country has increased by 20%,
which has diverted the international
apparel and garment companies to
Vietnam as an alternative location and
source for their low cost apparel
manufacturing. The international
apparel companies including Coach,
Crocs, Uniqlo, Fast Retailing Co. and
Lever Style are all considering or have
implemented changes to operate more
cheaper in countries like Vietnam.
China and Vietnam are still the top
two providers of apparel and textiles to
the US, but Vietnam is growing quickly
as an apparel powerhouse. During the
first six months of this year, Vietnam

BENEFITS
Beyond Conventional
Effluent Treatment

THE PROJECT PEOPLE

Wi t h S S P s E u e n t Tre a t m e n t
S o l u t i o n f o r Te x t i l e D ye i n g I n d u s t r i e s
SSP PVT LIMITED has come up with a Zero Liquid
Discharge Euent Treatment Solution for Textile
Dyeing Industries, by which in the one hand the
textile dyeing industry at large can treat the
euent consisting of dissolved solids, dye
chemicals & reuse the same condensate water
repeatedly for the dyeing process instead of
pumping the water from the ground and on the other
hand the salt used for dying can be reused & sold in
the market after dyeing.
The basic thrust of the technology is to convert entire
quantity of euent to zero liquid level by separating
water and salt using evaporation and separation
technology.

SSP PVT LIMITED

ISO 9001:2008 CERTIFIED & ASME U STAMP HOLDER

13 Mile Stone, Mathura Road,

Faridabad - 121003, Haryana (India)
Phone: +91-129 4183700
Fax: +91-129 4183777
E-mail: info@ssp.co.in
Website: www.sspindia.com

BURNING ISSUE

Vietnam is
not able to
compete in
terms of
productivity as it
has limited work
force, limited area
and unavailability
of raw materials
which keeps it far
behind the Chinas textile and apparel
industry. India has the capacity to
compete China as we have the same
ratio in terms of population, availability
of raw materials but we wont take
decision in a centralized manner like
China which is creating a barrier to grab
the opportunities. We are suppliers so
we must focus on the demands and
requirements of the buyers to survive in
the industry. Seeing the situation of the
market especially China the buyers will
definitely divert to India as it is the next
option in terms of quality and
infrastructure and if we are able to
attract them through our quality
products then there will be no looking
back. There will be increase in
employment and growth will be high,
the need of the hour is to work together
without pulling each other.
Sudhir Dhingra, Chairman &
M.D., Orient Craft Ltd.

arket
is full
of

opportunities but
the need is to grab
it through our
strengths. China
has become
expensive due to
hike in its labour cost and on the other
side Bangladesh is already in a crisis
due to recent incidents which has taken
life of several people so now the next
destination would be India. Buyers can
get quality, capacities and innovation in
India whereas Vietnam still does not
have capacity to fulfill the requirements
of all major markets. With limited area
and labour force, they cant exceed the
size of Indias apparel sector. The
dependence for raw materials is also a
drawback.
Animesh Saxena, MD,
Neetee Clothing Pvt. Ltd.

34

PERFECTSOURCING

September 2014

exported 14.5 % more in clothing and

textiles to the US than during the
previous first six months of 2013. It
went from $4 billion in apparel and
textile exports to $4.65 billion.
There are 3,000 garment and
textile firms in Vietnam in which 25 %
are FDI firms and it is expected to grow
throughout the year in anticipation of
forthcoming free trade agreements
(FTA). The largest city in Vietnam is Ho
Chi Minh City which has become the
major attraction for companies to make
new investments in the garment and
textile sector, and in the first six months
of 2014 it has received 70.62 % of the
total investment made in the citys
industrial zones. Many new projects are
on stake in this city which includes a
US$140 million facility producing
high-end garments project, by Worldon
Vietnam Co., Ltd. and a US$50 million
high quality textiles production factory,
by Sheico Vietnam Co., Ltd.
Many garment and textile firms are
working on business expansion projects
in Vietnam like in the North of the
country; Yulun Jiangsu Group has just
received permission to build a US$68
million yarn and fabric factory in Nam
Dinh province. Additionally, in 2013,
Texhong Textile finished the first phase
of its US$300 million yarn factory
project in Quang Ninh Province. As the
second phase of investment is to be
completed in 2015, its annual capacity
will soon double to 110,000 tonnes of
yarn. Similarly, within the past six
months, TAL (Hong Kong) which is
currently producing for firms like
Burberry, Banana Republic, and Tommy
Hilfiger has announced that it is seeking
more investment projects in Vietnam.
The firm, which has been in the country
for last 10 years, is believed to be
making plans to take advantage of the
forthcoming TPP Agreement.
Currently, the major players in the
Vietnamese garment and textile
industry are firms from China, Hong
Kong, and Taiwan. However, many
firms from South Korea, Japan,
Australia, and the US are also now
looking for larger investment
opportunities due to investors
anticipation of Vietnam fully opening its
market in line with World Trade
Organization (WTO) commitments and
the signing of the TTP Agreement.
Vietnams textile and garment
industry development plan for 2020 is
recently announced by its Ministry of
Industry and Trade with a vision for

Strengths
Dominant exporting capability
Low costs, skillful labor force
Renovated and modernized
equipment
Stable political environment
Favourable Government policies
Weaknesses
Most enterprises are medium and
small size
50 percent of raw materials are
imported
Production management is still
weak and inefficient
Marketing strategy is not paid
serious attention
Opportunities
Shifting trend from China to
Association of Southeast Asian
Nations (ASEAN) countries,
including Vietnam
Attracting investors from potential
markets such as Russia and Korea
Expanding market share in United
States, European Union and Japan
market
Large population: 90 million people
Threats
Strong competition from rivals
including China, India and Indonesia
Bargains of technology, hygiene,
social responsibilities
Competitive Advantages
Abundant source of skillful,
fast-learning and wage-competitive
labour
Modern facilities backed with
high-quality water treatment
systems
Cost-competitive locations for
manufacturing and exporting
Good and strong relationships with
big international buyers/importers
Recognition of credibility for
high-quality products
Support from free trade agreements
with major exporting markets

2030. The plan consist of a series of

milestones that includes localization
rate within the industry, the government
has set the goals of 55 % by 2015, 65 %
by 2020, and70 % by 2030. The
development plan also pushes for an
annual production growth rate of 12 to
13 % during the period 2013-2020.
Export goals have been set by 10 to
11 % annual growth in the 2013-2015
period, 19 to 21 % annual growth for the
2016-2020 period and 25 to 28 %
annual growth for the 2021-2030 period
whereas export turnover is predicted to
reach US$40 billion during the 20202025 period this will require 12 billion
square meters of fabric and five million
workers. It is also predicted that the
domestic market will see a growth rate
of nine to 10 % during the 2013-2015
period and 10-12 % during the 20162020 period. Additionally, firms which
are engaged in labour-intensive textile
and garment production will be
relocated to rural areas, whereas those
firms engaged in fashion production,
and related services, will be located in
urban areas.
Though Vietnam has become an

www.businesskorea.co.kr

BURNING ISSUE

As per the supporting industry

development strategy, the textile
industry in Vietnam has launched a
number of specific programmes where it
calls for investment in the production of
polyester fibre. Besides, the industry has
also required a 580 hectare land for
plant construction to have 11.6 million

spindles by the time of 2025. Moreover,

it needs to invest in large-scale
industrial parks, following by
supporting material development for
export garment. The domestic market
with more than 90 million people is the
good reason for the development of this
industry.

Export goals have been set by 10 to

11 % annual growth in the 2013-2015
period, 19 to 21 % annual growth for the
2016-2020 period and 25 to 28 % annual
growth for the 2021-2030 period whereas
export turnover is predicted to reach
US$40 billion during the 2020-2025
period this will require 12 billion square
meters of fabric and five million workers.
important destination for manufacturing, but
major players of industry are finding many
hurdles as well. One of the major hurdles is the
raw material as its industry is majorly dependent
on importing raw materials. The Vietnam textile
supply chain is currently focusing heavily on
exports (making up 86 % of production capacity),
and greatly depending on imported fabric sources
(accounting for 86 % of total demand) which leads
to barrier in the process of knitting and dyeing in
Vietnams textile supply chain. These have
prevented the industry from sustainable
development so to increase profits and
competitiveness, and reduce imports of raw
material, the industry needs to advance
supporting industries.

September 2014

PERFECTSOURCING

35

SURAT UPDATE

MEGA CLUSTER IN SURAT TO BOOST

BUSINESS Players Optimistic About the Cluster

36

PERFECTSOURCING

September 2014

www.screenprintindia.com

urat textile industry, which

is the biggest manufacturing
hub for man-made fabrics is
reporting a good growth and
expects the same trend in the coming
years also. Textile players of Gujarat
have welcomed the recently announced
Union budget presented by the Finance
Minister for setting up a mega-cluster in
Surat. The players are showing a great
interest in this upcoming cluster as they
look forward to it as a big change and
support to the entire value chain. The
problem related to fire, insufficient
supply of water, and shortage of gas is
affecting the production and deliveries
of many textile companies and has
affected the business in Surat.
Surats textile industry, which
involves around spinning, weaving,
processing, garmenting and exports,
employ around 1.5 lakh people directly.
Market estimates put the industry
turnover in the range of Rs. 40,000 to
Rs 50,000 crore annually. The
announcement of textile cluster has
increased the expectations of the traders
as they believe that this step will
increase employment opportunities in
the sector and give mileage to the
industry. Dinesh Dhankani,
Chairman, Reaghan Fashion Pvt.
Ltd. said, With the formation of this
mega cluster we will now not face
issues related to electricity and water,
which were hampering our
productivity for a long time. He
further informed, We are in this
industry from the last 50 years and
offer a wide range of viscose and nylon
fabrics to our customers. Though the
market is usually good during the
month of June and July, but this time
it was little slow all over India. The
company deals in plain and digitally
printed fabrics and is also exporting to
overseas markets.
Problems and issues are a part of
business and the problems related to
electricity and water are faced mainly by
manufacturers who deals in volumes,
have high capacities and also require a
lot of facilities, said Sagar Khatri,

Business Development, Arancia

Fashion. He further added,
Availability of labour is a problem area
especially in summers. Arancia Fashion
has a digital printing unit in Surat and
supplies all types of fabrics to the
customers including viscose, cotton,
polyester, silk, nylon and many others.
Khatri shares, Though Surat is known
for polyester fabrics we receive high
number of orders for poly fabrics as its
demand remains high. The company
mainly deals into exports and caters to
the markets of Central America,
Australia, Europe, London, Paris and
many other parts of the world.
According to me the formation of mega
cluster will solve the issues related to
labour, we also want that the
Government should come up with some
such more schemes which can motivate
the labours to work in the textile
industry, averred Khatri. He further
added, Mega cluster will help the
industry to be highlighted among the
buyers and will increase the demand for
our products. The company has a
production capacity of 4000-5000
meters fabric per day and is anticipating
100% growth as per the situation of the
market.
Another Surat- based company
Sagar Exports which is manufacturing
all types of fabrics for ladies garments,
saris and suits, has good reach in
overseas markets including Middle East
and African countries. The company
feels that the formation of mega cluster
will boost growth and encourage

business. We are not exporting directly,

but now we are planning to get into
exports, said Vikas Jain, Sagar
Exports. He further added,
Shortage of water and gas supply
creates hurdles in smooth production
and we hope the cluster will ease the
situation.
Alpesh Bodra, Chairman &
M.D., Sawariya International Pvt.
Ltd. said, According to me the
formation of mega cluster is one of the
supporting steps taken by the
Government as it will not only help in
networking but it will also support the
growth of the Surat textile industry.
Sawariya International Pvt. Ltd.
deals into almost all types of fabrics like
polyester, cotton, viscose, nylon, etc.
The company also caters the large
section of domestic market. Currently
the market is growing and reporting a
good demand from both the exports and
domestic segment, moreover, we are
anticipating 60% growth in financial
year 2014-15.
Siddharth Bachhawat,
Director, Niharika Creation
stated, Production depends on proper
supply of water, gas and electricity, but
the industry is facing issues related to
shortage and insufficient supply of these
necessities, which leads to delay in
consignment and affects our market and
clients. He shared, We are supplying
polyester fabrics to the export segment
and have good reach in the US also
where a lot of fabric from our end are
beings sent.

SURAT NEWS

urat textile traders have now set their eyes on Nepal as

they have decided to focus on the neighbouring SAARC
countries. The large number of textile factories in
Nepal have either closed down or are on the way to
closere due to labour unrest, high taxes, unclear government
policies etc. Federation of Surat Textile Traders Association
(FOSTTA) is therefore planning to visit Nepal to explore
opportunities to increase the textile trade. They would be
meeting the government authorities, demanding reduction in
customs and VAT duties charged by the Nepal government on
imports of polyester fabric from India.
Recently the ambassador of Nepal, Jenisha Bhatrai
had also visited Surat last week and met leaders of textile
industry, including the Southern Gujarat Chamber of
Commerce and Industry (SGCCI). The Nepalese ambassador
was given the overview about the citys textile trade in the
man-made fabric field and requested the traders to increase
their business ties with their Nepalese counterparts. Nepal
is the important destination as far as the polyester fabric
consumption is concerned. Nepals textile sector, which
is mostly cotton and synthetic based is facing the tough
situation due to closing of factories so it is the right time to
focus on its market.

www.yarnsandfiberscom.jpg

DESIGN OF SURAT MEGA CLUSTER

ANNOUNCED BY CENTRAL GOVERNMENT

ossible design of the textile

mega cluster is announced by
the Central government in
the Union Budget. The development of the mega textile cluster is
foreseen on the lines of the one
already developed in Ichhalkaranji in Maharashtra. It is
proposed to develop additional facilities like market research,
brand Surat, data library and the inclusion of the global fabric
research centre and zari sector. The textile commissioner
has assured to take up the clearance of yarn bank proposals
submitted by the Ved Road and Pandesara weavers
association to protect the small and marginal weavers from
the price fluctuations.

SURAT TO HAVE WORLDS

2ND REEBOKS FITNESS STUDIO

urat will have the worlds second Reebok Fitness

Studio after Linkin Road in Mumbai. The studio
will spread across an area of over 1400 sq ft and
will be opening along with Reebok Indias Fit
Hub concept store. Though there are lots of good chains
of gyms but there are very few fitness studio chains of
global standards. The very first such fitness studio came
up in Mumbai and the second such Reebok Fitness
Studio in the world will come up at Surat. Moreover,
strengthening its focus towards becoming the most
desirable premium fitness brand in the country, Reebok
India announced the launch of its first revolutionary Fit
Hub concept store located at Alpha Mall, Vastrapur, Ahmedabad. The new retail concept store aims to
inspire consumers to move, train and get fit.
Based on the Fit Hub concept, the brand plans to roll
out a total of 7 stores in Gujarat by the end of 2014 in
cities like Ahmedabad, Vadodara, Surat and Rajkot
among others. Reinforcing Reeboks fitness positioning,
the Fit Hub stores will provide a one-stop fitness
destination for the consumers multiple fitness needs
and aims to revolutionize the consumer experience at
the retail level by providing a complete fitness experience from the moment one walks into the store till the
very end. Each store is designed to give a look and feel of
a gym with fixtures that replicate gym equipment such
as pull up grids, genuine gym flooring and jump boxes as
seating, providing customers a
one-of-a-kind
retail fitness experience. The
stores also have
different
sections for different fitness activities such as
training, running, and aerobics, dance and
yoga.

September 2014

PERFECTSOURCING

www.places.adidas-group.com.jpg

SURAT TEXTILE TRADERS SETTING

SIGHT ON NEPAL

37

FAIR & EVENTS

Galleria
Intima
Closes on an
Average Note

Galleria Intima, the Indias only b2b show for intimate apparel
industry recently concluded in Goa. The show saw participation and
visitation from not only India but Sri Lanka, Bangladesh, Taiwan, Italy
and many more. Companies from different segments like packaging,
software and erp, fabric, machinery, and many other areas were seen
promoting their product range. Unlike previous two editions, the
current show was found to be a little slow in terms of visitation as very
few players were seen. However, response was mixed as well
because many exhibitors expressed that since the show is the only of
its kind in India, they meet right kind of people at the exhibition.

Anand Kumar, Director, GA Morgan Dynamics P. Ltd.

and Federica Giachetti, President, Morgan Tecnica Spa reported an
average response at the fair

38

PERFECTSOURCING

September 2014

alleria Intima, the Indias

only b2b show for
intimate apparel industry
recently concluded in
Goa. The show saw participation and
visitation from not only India but Sri
Lanka, Bangladesh, Taiwan, Italy and
many more. Companies from different
segments like packaging, software and
erp, fabric, machinery, and many other
areas were seen promoting their product
range. Unlike previous two editions, the
current show was found to be a little
slow in terms of visitation as very few
players were seen. However, response
was mixed as well because many
exhibitors expressed that since the show
is the only of its kind in India, they meet
right kind of people at the exhibition.
Dealers, export and buying and
sourcing houses dealing with the trade
of Lingerie, Mens Innerwear,
Sleepwear, Swimwear, Shapewear,
Socks & Stockings were seen at Galleria
Intima. The show saw many seminars
and concurrent events. After the
inauguration technical sessions were
held, white paper Changing Face of
Indian Intimate Wear Consumer from
Basics to Function, Fashion & Fun was
presented by Wazir Advisors. Another
seminar on innovative technology in bra
moulding was presented by INVISTA.
Other than this the Spring summer
style file, 2015 that analyzed the key
trends in lingerie were showcased by
Carlin international and was presented
by David Landart. A Seminar on Brave
New World of Fashion Technology
Solutions Technology Trends to
Inspire Intimate Apparel Industry was
presented by Dr. Hari Kenkare, Lectra
Technologies. There was a panel
discussion also on Digitizing Indias
Retail Landscape, the next wave of
online and offline convergence.

(L to R)Lahiri Hettiarachchi, Business Development Executive, Prym Intimates Lanka (P)

Ltd., Yasas, Customer Relations Executive, Trischel Fabric (Pvt) Ltd, Umar Fareez,
Executive-Strategic Management, Trischel Fabric (Pvt) Ltd. and Tamaara, Noyon Lanka

FAIR & EVENTS

Excellent Response
Reported By H.j.
Vintex Lace
International Co. Ltd.

Ravin Ghogar, Director, H.J. Vintex Lace

International Co. Ltd. & Vikas Arora,
International Sales, Jiun Her Industrial Co. Ltd.

The company is involved in

manufacturing fabrics and laces
participated at Galleria Intima for the
first time and received an excellent
response from the fair. Ravin
Ghogar, Director/Marketing
Manager, H.J. Vintex Lace
International Co. Ltd. said, The
innerwear market is huge and it is
growing fast, which would support
growth of our company. The company
has in-house facilities for
manufacturing entire range, however,
some of the products are outsourced
as well. He also informed, We have
30 to 40 machines in which 60% are
used for local business so we need to
expand more and now we are tapping
those factories which we had not
focused earlier.
Vikas Arora, International Sales,
JIUN HER INDUSTRIAL CO. Ltd
which is handling Indian market
during the interaction shared, I am
seeing that the market is growing for
embroidery as well as for laces. He
also informed, Right now we are
planning to have a showroom where
we will keep all the samples and will
contact the customers who have been
following up, and lets see how it works
because for both of us its very new to
India. The company has capacity of
about 10-15 tonnes which is a
collective volume of all the fabrics and
is also dealing in domestic and local
market. During the fair we met many
buyers and found that this is a great
platform to have one-o-one interaction
with prospective clients, said Ravin.

Bischoff Gamma (Thailand) Ltd. Reports

Positive Response
Bischoff Gamma (Thailand) Ltd.
has an exclusive embroidery designing
and development division that
comprises of dedicated and highly
inspired designers working in the
process of creating new concepts in
view of the ever-changing fashion
industry. The company provides
ecologically compatible textiles
according to the customers
requirement by using some of most
sophisticated equipment. Charie
Advincula, Export Sale Manager,
Gemma Knits (Thailand) Co.
Ltd. stated, Our company has
received a positive response from
visitors who appreciated our product
range and showed interest in
associating with us as well. The
company offers a wide range of

[L-R]Charie Advincula, Export Sale Manager, Gemma

Knits (Thailand) Co. Ltd. Sameer (Ken) Bischoff
Gamma [Thailand] Ltd and visitors at their stall

embroidery lace, embroidery fabric,

trimmings, motifs, Jacquard-Tronic
Laces, Super-Tronic Laces, and many
more to our clients as well as to
market which are manufactured by
using computerized high-end
machinery.

Clear Packaging Pvt. Ltd. Received

Good Response
Clear Packaging Pvt. Ltd., a
manufacturer and exporter of
packaging materials and advertising
goods in India showcased a wide range
at Galleria Intima. Munish Dhingra,
Clear Packaging Pvt. Ltd. said, We
only use high quality PVC and other
substrates which are further processed
to develop numerous packaging
materials. The company is also
engaged in offering customized
solutions to their clients according to
their need and requirement. The
products and services of the company
have wide applications in areas like
packaging, advertising, display, and
many more.
Clear Packaging is capable of
producing as per the requirements of
the clients and created its reach in
India as well as in overseas. The
products of the company includes
Blisters, PVC/PET transparent boxes,
Trays PVC/HIPS/Velvet, Cylindrical
Transparent Containers, etc., PVC
pouches/Vinyl Bags, PP Boxes,
Industrial Vaccum forming and other
customized solutions are also
manufacture and export by the
company. The advertising products
includes hanging product display,
country top display, floor stands,
vacuum formed embossed products,

Munish Dhingra, Clear Packaging Pvt. Ltd.

Vacuum formed signage, etc. Munish

said, We are known in the industry
for our quality products at most
competitive price and on time delivery.
The team includes engineers,
designers, quality personnel, R&D
staff, marketing personnel and
supervisors. The company keeps on
upgrading their technical awareness to
be updated with the industry. While
commenting on the response of the
fair he said, Buyers who visited our
stall has appreciated our products and
we have received a good response from
them.

September 2014

PERFECTSOURCING

39

FAIR & EVENTS

A tete-atete with
Paolo
Briatore,
Business Director
Apparel South Asia
Managing Director,
INVISTA Sales & Service
india PVT. Ltd.

40

PERFECTSOURCING

September 2014

At the occasion of Galleria Intima, Team Perfect

Sourcing met Paolo Briatore, who is currently the
Business Director Apparel South Asia and Managing
Director, INVISTA Sales & Service India Pvt. Ltd. In his
current role, Paolo is involved with supporting and
promoting innovative business characterized by
differentiated offerings across the apparel and textile
value chains driven by excellence in product quality,
service and talented people organization, in the
geographies of India, Pakistan, Bangladesh and
Myanmar. He joined INVISTA Apparel organization in
September 2005, based in the companys Italian branch
office of Milan. He was the area manager for Italian
Apparel market and product leader for special polyester
in EMEA and South Asia (Europe Middle East, Africa,
India & Pakistan) regions. In 2010, he became the
business manager and country manager for Turkey and
North America with office based in Istanbul.
After spending nearly 20 years in textile business,
moving from innovation and sales management in
applied in textile machinery, fiber preparation, dyeing
and finishing process to man-made fiber production, the
man is now on a mission to capitalize the growing
business opportunities in India. In a tete-a-tete with the
Publisher & MD of Perfect Sourcing, Paolo shares his
vision and opinion about the changing dynamics of the
Indian market.

Excerpts
PS: What is your
observation about the
current scenario in textile
and apparel industry of
India?
Paolo Briatore: Looking at
the trends in the global industry it
can be said that the industry is
growing at around 15% every year.
In India, the innerwear industry is
worth Rs 18000 cr and it is expected
to reach Rs 60,000cr in 2023, which
clearly indicates that the size of
Indian innerwear industry is
growing rapidly. In terms of market,
the growth in the EU is still slower,
however, it is a mature market and
we always try to find out the
possibity to grow if not in double

digit at least single digit. Retailers in

EU and US are finding it difficult to
keep double digit growth and thus
have stated importing from low cost
manufacturing countries. This has
created opportunity for production
in South East Asia. In India, the
domestic market is becoming much
more mature as today innerwear
here does not only imply a simple
basic pure cotton underwear. With
increasing in spending power,
enhanced social life, the industry is
on an upward swing. There is a huge
market for innerwear in India and it
is growing at a fast pace. Of course
the situation is shrinking globally,
however, in India the demand is
moving from basics to premium and
thus the retailers are trying to match

FAIR
FAIR&&EVENTS
EVENTS
up expectation in terms of quality,
comfort, fashion, trends and value.
INVISTA wants to be part of this
change.

GROZ-BECKERT

REPORTED
SATISFACTORY
PS:
What has been the
success mantra and
RESULTSofAT
GTE
philosophy
INVISTA?

KINGLACES

ATTRACTS VISITORS WITH VARIETY IN

NECKLINES

ing Laces, a
manufacturer,
exporter and
wholesaler of all
types of fancy laces
exhibited a wide range of their
products including antique
lace, cut work lace, embroidery
lace, handwork lace, sequin
lace, zari lace, patches, kali,
and necklines at the show.
Domestic market is in the
major focus at the company
and thus it specially came up
with new range of fancy neck
patches
the show.
but is a huge
nichefor
market.
Our The
R&D
product
is
made
with
a half
team is regularly focusing on bringing
machine
and
halfand
handwork
new products
on the
table
products
technique,
while
the
base of
ahead of time.
each
neckline
patch is made on
Our brand LYCRA is made in
PS: What changes you have
machine,
is further enhanced
seen in the trends and
order to refresh
anditrejuvenate.
We
with
handwork
such
as
demand from Indian
want to create LYCRA with
difference.
cutting, and value addition
market?
with
embroidery,
Zariis
and
(At middle) S. Kanwal, DGM, India & Nepal, PS: How
much
growth
beads.
Groz-Beckert
with
his
team
Paolo Briatore : In India, the
anticipated for FY 2014-15?
While commenting about
demand is moving from what is needed
the
fair Dalpat
J. are
Kaswala,
i.e the essential
to unique.which
It is not
Paolo Briatore
: We
roz-Beckert
hasonly
MD,
King
Laces
the
about necessity
but about
value,SAN
fashion,
better margins, said,
enhanced
recently
launched
10 XS focusing on
fair.
We
have
received
good
comfort and needle
quality.for
India
moving
in
market reach and increased market
ultraisfine
fabrics
product as the
a great way and
the
opportunities
are
share, youresponse
can say for
we our
are targeting
participated at the fair to
demand
of
these
necklines
growing everyday.
Forits
instance,
growth. We are
selling has
promote
productfew
range. Thedouble digit
increased
in
the
market.
years
the Indian
mobile
premium segment andHe
show back
remains
satisfactory
forindustry
our company products in
also
thatwho
theare
was
so big,tobut
you look at itsaid S. there are lot ofinformed
companies
as itnot
reached
ourifexpectation,
company
is
getting
good
today,
the growth
has created
new
looking for
Kanwal,
DGM, India
& Nepal,
benchmark.
Retailers
needshowcased
to grab thisour differentiation
Groz-Beckert.
We have
opportunity
and
cash
on
the
SAN series of Needles at the growth
fair including and
aspect.
SAN 6 for Denim Sewing, SAN 10 and the opportunities to
latest SAN 10XS for ultrafine fabrics, he create interesting
PS:
Please elaborate some
products, but
added.
plans
of
INVISTA
for
the
SEWING5 from Groz-Beckert stands forwith good
coming
years?Service, Superiority and pricing. We have
Supply, Solutions,
Sustainability, which collectively stand for to find out how
Paolo Briatore
: Our
main focus we can balance
Groz-Beckerts
consistent
customer
objective
is
to
be
a
market
leader
as wefrom both. We can
and service expertise, said S. Kanwal
want
to
create
value
for
our
clients
and
reach our target
Groz Beckert. The group believes in
want
to
be
a
real
solution
partner
by
working with its customers and developing by focusing on
offering
them
withand
innovative
pioneering
ideas
solutionsproducts
to ensure notour brand,
and
services.
We
want
to
be
a
partner
only top product quality, but also success marketing,
rather
than a pure
supplier
and
technology and
and leadership
in afiber
tough
and competitive
that
is
our
core
objective.
We
are
product portfolio
market.
focusing on areas to grow and whether it we as well
is intimate apparels, innerwear, ready to believe that in
wear tops, we want to be in the premium coming years we
part of this market which is not small
can really
Paolo Briatore : Market based
management principle is driving us
towards becoming a leader in the
segment and market. Integrated
compliance, value creation, customer
focus, knowledge sharing, respect all
these are principle is being applied by
INVISTA. Our philosophy is to work on
the principles without any compromise
and we strongly believe that if in some
situation any of the principles is getting
compromised we will not do business.
Our objective is to create long term
value which is created by people not by
company. The company will have
profitability, however, if we do not
create value one cannot be in business
for a long time.

We have received good

response for our product as
the demand of these
necklines has increased in
the market.

become a reference for the market.

PS: LYCRA MOVES YOU,

what is the concept behind
this punch line?
Paolo Briatore : I want to say
there are many factors in LYCRA i.e
comfort, freedom, movement, but it
has also
to create
the MD,
continuity,
the
Dalpat
J. Kaswala,
King Laces
emotion and the link through
orders from
almost
over India,
sensation
and
it canallcreate
magic.but
It is
we
are
targeting
mainly
to
the
markets

no anymore the picture that LYCRA

of
Delhi,
Punjab,
Ludhiana
and
Ambala.
delivers through the ga and create
He further
There
are many
changes
to continues,
the consumer.
Through
the
other
products
which
are
running
in the
consumer analysis we have created
a
market
in which
zari, copper
new
image
whichgolden
is simplified
usingzari
and concept
antique zari
are the.highest selling
the
of LYCRA
patches.

March 2014
2014
September

PERFECTSOURCING

51
41

FAIR & EVENTS

NAEC ORGANIZED
SEMINAR

(L to R ) Shri Anil Peshawari (Vice-President, NAEC) Shri Manoj Yadav (Regional PF Commissioner,
Noida), Shri Sanjay Kesari (Regional PF Commissioner, Delhi)

seminar was recently

organized by Noida
Apparel Export Cluster
(NAEC) to foster the
knowledge of Universal Account
Number (UAN) on 7th August, 2014 at
Sports & Cultural Club, Noida in
association with Employees Provident
Fund Organisation (EPFO), Sub
Regional Office, Noida. The objective
was to familiarize the participants with
the PF policies and provide a forum to
exchange their views.
The session was addressed by
Manoj Yadav, Regional PF Commissioner,

Noida, Sanjay Kesari, Regional PF

Commissioner, HO, Delhi, Lalit
Thukral, President, NAEC and Anil
Peshawari, Vice President, NAEC in the
presence of Ankush Sharma, Assistant
PF Commissioner and the senior staff
from the EPFO, Noida.
Manoj Yadav, Regional PF
Commissioner, Noida stated, The
adoption of this new process would
drastically cut short the time required
for getting code number and it is a part
of the commitment of the organisation
to be more responsive to the needs
of the stakeholders by utilizing

(L to R ) Shri P. N. Singh, (Sect. Genenral, NAEC), Shri Lalit Thukral (President, NAEC),
Shri Anil Peshawari (Vice-President, NAEC), Shri Manoj Yadav (Regional PF Commissioner, Noida),
Shri Sanjay Kesari (Regional PF Commissioner, Delhi), Shri Ankush Sharma (Assistant PF Commissioner, Noida),

42

PERFECTSOURCING

September 2014

technology.
Technical sessions and case studies
were also held at the seminar in which
Sanjay Kesari described the importance
of the UAN, the errors occurred while
implementation, building coordination
with the workers and other problems
related to the Provident Fund. The
seminar focused on the role of the
garment factory owners and their
management in planning the policies
for the workers. In addition, it helped
clarify the role of the EPFO department
in helping to the implementation of
this scheme.
Senior HR managers of many
export houses from Noida exchanged
their opinion and expertise regarding
UAN, existing PF policies and a
discussion on new polices. Lalit
Thukral announced that a team of
senior HR Managers of different
companies will be formed who would
assist others in case they face any
difficulty / problem related to the
Universal Account Number and PF
issues. On the occasion, Anil Peshawari
also welcomed the opportunity to
exchange views on training strategies
with the Employees Provident Fund
Organization (EPFO).

FAIR & EVENTS

Ramkrishna (Jhanwar)
Group Opens One Stop Shop
for Fabrics in Gurgaon
Sudhir Dhingra, CMD,
Orient Craft Ltd.
inaugurates the Showroom

ourcing fabric for creating

bestselling products is one
of the most critical areas in
garment manufacturing.
Fabric has to be available at the right
time as production and delivery largely
depends on the same. Realizing the
same, Ramkrishna(Jhanwar) Group a
manufacturer, exporter and supplier of
all kinds of fabrics has recently opened a
fabric showroom in Gurgaon, an area
where more than 2000 garment units
operate. The idea behind the opening of
a showroom was to become closer to the
export houses, who did not have any
fabric suppliers in and around Gurgaon.
The showroom was inaugurated by
Sudhir Dhingra, Chairman & MD,

Orient Craft Limited in the presence of

several other exporters and buying
houses. Among the other distinguished
guests were Animesh Saxena, MD,
Neetee Clothing, PK Aggarwal, VP,
BIBA Apparels Pvt. Ltd., Mahesh
Mundhra, CEO, Jayshree International,
and many other players from textile
dyeing and printing industry.
Team of many well- known export
and buying houses like TMS Fashion
(Delhi) Pvt. Ltd., Shahi Exports Pvt.
Ltd., Omega Designs, Richa company,
Fashion Accessories, Different Count ,
Sarita Handa Exports were also seen at
the opening ceremony. Deendayal B.
Jhanwar, MD, Ramkrishna
(Jhanwar) Group stated that, The

Sudhir Dhingra, CMD, Orient Craft Ltd. inaugurating the Showroom

44

PERFECTSOURCING

September 2014

objective behind this showroom is to

avail my services close to the door of my
customers as well as increase our reach
in the market. He also said, The idea
behind opening a showroom in Gurgaon
was to be nearer to exporters,
manufacturers and buying offices
located in and around Delhi and NCR.
On this occasion, Sudhir
Dhingra, said,
Ramkrishna(Jhanwar) Group has
taken the right step as it will help our
fabric sourcing teams and buyers in
getting access to new variety in fabrics
and innovation easily. He further said,
Since the showroom is in close
proximity to all export houses it will
help in avoiding delays that occur due to
fabric sourcing problems. Animesh
Saxena, MD, Neetee Clothing Pvt.
Ltd. commented, The existence of RK
Jhanwar in Gurgaon will help exporters
in sourcing fabrics on a very high scale
as getting fabrics on right time is one of
the major issues for exporters and its
production department.
The fabric sourcing teams from
Shahi Exports Pvt. Ltd. and Richa
company also visited the showroom and
showed their interest in the innovative
products showcased at the showroom.

Team of Shahi Exports at the opening ceremony

FAIR & EVENTS

Deendayal B. Jhanwar, MD,
Ramkrishna (Jhanwar) Group
The objective behind this
showroom is to avail my services
close to the door of my customers
as well as increase our reach in
the market
They also shared that since Ramkrishna
Group offers innovative range and
quality fabrics at reasonable prices,
which is not easily available in the
market the newly opened showroom will
definitely be a big support in creating
new and attractive product range.
Ramkrishna Group is the first company
in the unorganized textile sector which
produces fabrics evolving an extensive
portfolio. The company sources yarn
from Best Spinners and also offers
natural fibres like linen, Viscose, Modal,
Tencel and organic yarns. Equipped
with world class Benninger warping and
sizing machines the company has a daily
capacity of 13 tonnes using eco- friendly
chemicals. Advanced and new
technologies are upgraded by the
company like Rapier looms, Airjet
looms, Cimmco looms, etc.
The group has the ability to weave
fabrics from 40 GSM to 400 GSM.
Weaving is an intricate stage of
production and thus we make sure that
quality standards are set with utmost
planning, also, stringent checks at each
stage with a systems and process work
formula for every machine and operator
is done for 100% quality output, added
Deendayal. The company is also
producing a wide range of fabrics like

cotton, blended, slubs, cross hatch, twin

warp beams, Tussar, Twill, Cords,
Corduroy Cord, Canvas with stitched
weaves, dobbles, satins and chinos and
shirting in double yarn counts from
2/170 up to 2/40s.
PK Aggarwal, VP, BIBA
Apparels Pvt. Ltd. said, Ramkrishna
(Jhanwar) Group is one of those
companies who are ready to take on new
challenges for the growth of the industry
and is the company behind success of
Excel fabric in India. He also added,
Due to presence in Gurgaon we will be
able to get updates on new fabrics easily
and will be able to use them in our
product range. Unmukt Sharma,
Fabric Technologist, Indian
Processing and Garment Services
Pvt. Ltd. said, Earlier there was no
showroom of any fabric manufacturer in
and around Gurgaon, with the opening
of this showroom we would get a wide
range of fabrics and thus we will be able
to source any fabric at any point of
time.
Vipin Kumar, Fabric
Manager, TMS Fashion (Delhi)
Pvt. Ltd. averred, Though we have
been associated with Ramkrishna Group
from a long time, however, the step that
is taken by them company would solve

Animesh Saxena, MD,

Neetee Clothing Pvt. Ltd.

PK Aggarwal, VP,
BIBA Apparels Pvt. Ltd.

Unmukt Sharma, Fabric Technologist,

Indian Processing and Garment Services Pvt. Ltd.

Vipin Kumar, Fabric Manager,

TMS Fashion (Delhi) Pvt. Ltd.
(L-R) Deendayal Jhanwar with R N Maheshwari, Maheshwari Textiles with his colleague and Kailash Chandak

September 2014

PERFECTSOURCING

45

FAIR & EVENTS

our issues related to timely delivery.
He also added, It will not only reduce
the time, but will also improve the
transparency and communication
which is very much required at every
level to understand each others
requirements.
Ramkrishna Group has latest and
high output machines like Benninger
Sizing Machine, Benninger Direct
Warper Machine, Picanol Airjet Looms,
Picanol Rapiers, Sulzer Projectile

machines and many more that help

them in coming up with fabrics using
latest technology. The presence of
Ramkrishna (Jhanwar) Group in
Gurgaon will reduce the time required
for sourcing fabrics which is a big task
for the industry and this will help down
in bringing down the production time,
pointed Ravi Puri, Sarita Handa
Exports.
While sharing about the current
market trends Deendayal Jhanwar

Deendayal Jhanwar with Group of Clients and Associates

46

PERFECTSOURCING

September 2014

Ravi Puri,
Sarita Handa Exports.

said, Rayon fabric is very much in

demand these days and also Butta is
another fabric which is being preferred
by the overseas buyers. He further
added, The vision is to make a direct
contact with our customers and to
update them with the ongoing trends
by displaying new arrivals at the
showroom so that the exporters can
offer new and innovative products to
their customers. The company is
anticipating 30% growth this year and
is also planning to expand area in the
next few years which will help the
company to grow by 100%.